October 16, 2012

American asks bankruptcy court for another 30 days to file its reorganization plan

American Airlines' parent company, AMR Corp., asked the bankruptcy judge to give the carrier another 30 days to file its reorganization plan with the court.

AMR currently has until December 28 to file its plan with the court and in a motion filed on Tuesday, asked the deadline be extended to January 28. The unsecured creditors committee joined AMR in its motion, supporting the request to push back the deadline.

"The additional thirty days will be used to develop and build consensus for a feasible chapter 11 plan," the filing said, adding it will give American more time to negotiate with its pilots union, which is the only unionized work group at the carrier that does not have a new contract agreement in place.

In an interview last week, AMR chief executive Tom Horton said he thought the carrier would be able to file its reorganization plan by the end of the year.

"I think we can do it," Horton said. "Now, we may, I
wouldn’t rule out the possibility that we seek an extension. But there is no
reason why we can’t have a plan filed by the end of the year."

In a hotline message to flight attendants on Tuesday afternoon, the Association of Professional Attendants said the motion cites strategic alternatives as part of the reason to extend the deadline.

"APFA is encouraged by the fact that US Airways and AA have had substantive conversations and hopeful that this extension will bring us another step closer to a merger inside bankruptcy," the union said.